The board of directors of Abu Dhabi Islamic Bank (ADIB) has recommended to increase the capital of the bank by AED464 million ($123.6 million) by issuing new shares.
The 464 million new shares will be offered at a nominal value of AED1 per share as well as an issuance premium of AED 1.16 per share, bringing the total value of the rights issue to AED1 billion, the bank said in a statement.
It added that the rights issue is subject to regulatory approvals and by the bank’s shareholders at a general meeting, which will be scheduled in the coming weeks.
The board has also proposed the issuance of a $750 million perpetual tier 1 sukuk, and the repayment of its $1 billion sukuk that was successfully issued in 2012.
The proposed rights issue would increase the issued capital from AED3,168,000,000 to AED3,632,000,000 through issuance of 464,000,000 new shares.
Khamis Buharoon, ADIB vice chairman and acting CEO, said: “The pace of the bank's growth has been fast, increasing its number of customers to one million in the UAE, nearly double the number it had five years ago.
"To maintain its growth trajectory, while maintaining a solid capital buffer, the bank is looking to increase its capital. We are therefore inviting our shareholders to participate in our growth trajectory through a rights issue.”
ADIB reported a 17.7 percent increase in net profit in 2017, which reached AED2.3 billion.
ADIB said it will set the timetable for the rights issue following shareholder approval.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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